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British economy: Sterling dips after GDP numbers just miss forecast

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Bank of England Governor Mark Carney

Bank of England Governor Mark Carney

Bloomberg

Bank of England Governor Mark Carney

Sterling dipped but British stock markets inched higher on Tuesday after gross domestic product numbers for the fourth quarter came in marginally weaker than expected.

With annual growth of 2.7 percent in the fourth quarter, Britain's economy continues to outstrip its euro zone peers, but the slightly weaker than forecast number may in the margins add to the case for the Bank of England to hold off into next year with any rise in interest rates.

Sterling dipped to its lowest of the day at $1.5065 in response. Its loss against a strengthening euro also reached 0.8 percent.

The FTSE 100, which often takes heart from a weakening of sterling, pared losses to trade less than 0.2 percent lower on the day at 6838.08 points.

Reuters